According to industry sources, certain western buyers are stipulating in recently issued letters of credit that they will bear no responsibility for goods and payments in the event of trade restrictions imposed on Bangladesh by western countries.
Reports claimed this adding senior trade body official reportedly received information about such provisions being included in letters of credit by some buyers.
While declining to disclose the buyer’s identity, the sources reportedly highlighted the growing concern over potential trade restrictions following the issuance of the ‘Presidential Memorandum on Advancing Worker Empowerment, Rights, and High Labor Standards Globally’ by US President Joe Biden.
The memorandum, announced on 16th November, outlined the US’s commitment to holding accountable those threatening union leaders and labour rights, employing measures like sanctions, trade penalties, and visa restrictions.
Despite reassurances from Bangladesh’s State Minister for Foreign Affairs, Md Shahriar Alam, the Bangladesh embassy in Washington expressed concerns on 20th November, suggesting that Bangladesh might be a target of the US memorandum.
